VanEck files registration statement for VanEck Bitcoin Trust
Major asset manager VanEck once again files for a Bitcoin ETF with the SEC, continuing years-long efforts to launch regulated Bitcoin fund.
On December 30, 2020, VanEck files registration statement for VanEck Bitcoin Trust. Major asset manager VanEck once again files for a Bitcoin ETF with the SEC, continuing years-long efforts to launch regulated Bitcoin fund.
The firm's persistence in pursuing a Bitcoin ETF despite repeated rejections demonstrated institutional conviction that Bitcoin represented a legitimate asset class worthy of traditional investment vehicles and that ETF approval was inevitable even if the timing remained uncertain. VanEck's application proposed a Bitcoin ETF that would track Bitcoin's price through holdings of actual Bitcoin rather than futures contracts.
The fund would address the SEC's previously stated concerns by partnering with established custodians, implementing robust security measures, using regulated market data for pricing, and establishing surveillance-sharing agreements with exchanges where possible. However, the SEC had consistently rejected spot Bitcoin ETF applications while later approving futures-based ETFs, citing concerns about market manipulation, custody risks, and lack of comprehensive surveillance of the global Bitcoin market.
For Bitcoin's institutional adoption, ETF approval remained a holy grail that would dramatically expand access to cryptocurrency investment. An ETF would allow traditional investors to buy Bitcoin exposure through regular brokerage accounts, enable financial advisors to recommend Bitcoin to clients, and permit retirement accounts to hold cryptocurrency indirectly through ETF shares.